The Minister for Finance, Dr. Cassiel Ato Forson, has announced the transfer of GHS987,965,073.00 from the Consolidated Fund into the District Assemblies Common Fund (DACF), representing the first quarter disbursement for 2025.
This move, he noted, is part of the government’s renewed commitment to strengthening local governance and economic development through fiscal decentralisation.
Addressing Parliament on June 3, 2025, the Finance Minister who is also the Member of Parliament (MP) for Ajumako-Enyan-Esiam, revealed that only 40% to 50% of DACF allocations had reached the Assemblies in recent years — a situation he said severely undermined the capacity of Metropolitan, Municipal, and District Assemblies (MMDAs) to meet pressing local needs and drive grassroots development.
He assured the House that the current administration, under President John Dramani Mahama, is committed to reversing this trend by adequately resourcing MMDAs and ensuring timely, accountable, and targeted use of funds to revitalise the local economy.
Dr. Forson emphasized that 80% of the released funds will be transferred directly to the Assemblies, in accordance with Cabinet-approved guidelines aimed at promoting effective service delivery and transparency.
Breakdown of Fund Allocation
The Finance Minister detailed how the funds are to be utilised, with a focus on priority development sectors:
- 25% – Design and construction of 24-Hour Economy Model Markets
- 10% – Construction of health facilities (minimum of 2 CHPS compounds per Assembly)
- 10% – Construction of educational facilities (1 KG block, 1 primary, 1 JHS block)
- 10% – Provision of potable water (minimum of 10 boreholes for rural Assemblies)
- 10% – Environmental sanitation (solid and liquid waste management)
- 10% – Provision of school furniture
- 5% – Administration, including monitoring and evaluation
- 20% – Completion of abandoned legacy projects, including uncompleted infrastructure under the Middle Belt Development Authority, Coastal Development Authority, and Northern Development Authority
Dr. Forson stressed that the Administrator of the DACF is required to ensure the direct transfer of 80% of the funds to the Assemblies and to submit expenditure returns to the Ministry of Finance before any further disbursements are made.
He also urged Members of Parliament to monitor the use of the funds in their respective districts to ensure alignment with the approved guidelines and to promote transparency and development at the local level.
- 25% of the amount transferred to the District Assemblies is to be utilised for the design and construction of 24-Hour Economy Model Markets.
- 10% for the construct of health facilities (minimum of 2 CHPS compounds) per Assembly.
- 10% for the construction of educational facilities (1 KG block, 1 primary school block and 1 Junior High School block).
- 10% for the provision of potable water (minimum of 10 boreholes for rural Assemblies).
- 10% for environmental sanitation (solid and liquid waste management).
- 10% for the provision of school furniture.
- 5% for the administration of the Assemblies, including monitoring and evaluation.
- And finally, recognising the need to complete abandoned legacy projects, including the numerous uncompleted structures left behind by the Middle Belt Development Authority, Coastal Development Authority and the Northern Development Authority, we have allocated a whopping 20% to fix the mess.
The finance minister indicated that the Administrator of the District Assembly Common Fund is required to ensure that 80% of this amount is transferred directly to the Assemblies without fail and expenditure returns submitted to the Ministry of Finance before subsequent releases will be made.
He charged Members to monitor the utilisation of these amounts sent to their respective assemblies in line with the approved guidelines by Cabinet.
